Houston-based lower-middle market private equity firm CapStreet has raised $340 million in the final close of its fourth fund. Its target was $250 million.
HOUSTON–(BUSINESS WIRE)–The CapStreet Group, LLC (“CapStreet”), a Houston-based lower-middle market private equity firm, today announced the final closing of CapStreet IV, L.P. (“CapStreet IV”). CapStreet launched fundraising for CapStreet IV on November 5, 2013, with the opening of an electronic data room, held a first close in December 2013 with commitments of $249.5 million and a second close in February 2014. On May 6, 2014, CapStreet IV held a final close with total commitments of $340 million, significantly above its $250 million initial target.
“We are extremely grateful for the tremendous support from both existing and new investors in successfully raising CapStreet IV,” said George Kelly, CapStreet founder and CEO.
CapStreet did not engage an intermediary to assist in the fundraising process.
Similar to the strategy of the firm’s previous fund, CapStreet III, L.P., CapStreet IV will continue to make control investments in privately held, lower middle market companies headquartered in Texas and surrounding states. CapStreet targets industrial and diversified business service companies, with annual EBITDA between $5 million and $20 million. The CapStreet team works closely with the management of these companies to build larger and more profitable organizations. Since the firm’s founding in 1990, CapStreet has invested in 35 [initial] platform companies.
The CapStreet Group is a private equity firm founded in 1990 that invests in owner-managed, lower middle market companies headquartered in Texas and surrounding states, with a particular emphasis on companies headquartered in the greater Houston area. CapStreet targets companies operating in the industrial distribution, industrial manufacturing and business service sectors and partners with management and existing owners to accelerate growth and improve profitability.